Back to top

Image: Bigstock

Is Lazard Ltd (LAZ) Stock Undervalued Right Now?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Lazard Ltd (LAZ - Free Report) . LAZ is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 10.26. This compares to its industry's average Forward P/E of 13.24. Over the past 52 weeks, LAZ's Forward P/E has been as high as 12.62 and as low as 7.92, with a median of 9.58.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LAZ has a P/S ratio of 1.5. This compares to its industry's average P/S of 2.64.

Finally, our model also underscores that LAZ has a P/CF ratio of 6.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. LAZ's P/CF compares to its industry's average P/CF of 17.67. Over the past year, LAZ's P/CF has been as high as 7.01 and as low as 4.37, with a median of 5.33.

These are only a few of the key metrics included in Lazard Ltd's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LAZ looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lazard, Inc. (LAZ) - free report >>

Published in